Front Page: Obama Readies $75 Billion Housing Rescue

After signing the $787 billion stimulus bill, President Obama unveiled a new $75 billion housing program that will cut mortgage payments for millions facing foreclosure. — Reuters

General Motors says it needs as much as $16.6 billion in new loans from the US government to survive. — Bloomberg

After arriving in Indonesia, Secretary of State Hillary Clinton said the US seeks to deepen relations with the Islamic world. — Wall Street Journal

Hundreds of people in Antigua lined up to withdraw cash from a bank, after its Texas billionaire baker Allen Stanford was charges with $8 billion fraud. Antigua's prime minister urged the public to remain calm. — Business Week

In a press conference yesterday, Alex Rodriguez answered questions about his drug use, offering many more details than players previously under a cloud of steroid use. — ESPN

Zimbabwe will pay 130,000 government workers in US dollars to help revived the hyperinflation-ravaged country. — BBC News

Put simply, this program is designed to benefit Fannie and Freddie shareholders, not the great majority of Americans struggling with their mortgages. The only loans that can be restructured are those held in Fannie/Freddie portfolios or securitized by the twins. Just in time to benefit from a refinancing boom, Fannie and Freddie plan to raise their fees to as high as 3.5 percent on April 1. (Note that date, taxpayers, and ask yourselves who is being played for the fool.) And only a tiny slice of homeowners will be eligible — those who are in relatively weak positions (house payments exceed 31 percent of gross income) but not too weak (house payments do not exceed 38 percent of gross income) and who are, despite their mortgage difficulties, still creditworthy enough to pass bank underwriting standards. Fannie and Freddie get new capital, new income, and better loans in their portfolios. Most homeowners get nothing, and taxpayers get the bill. Fannie and Freddie, which ought to be disbanded, will survive to continue distorting both markets and politics.

Steph- they approved them for loans, because they had collateral, the house! It is no different then a person lying on their credit card applications, racking up a $10,000 bill and defaulting on it. That goes against their credit. With a collateral based loan, you sign that you will pay in accordance with the terms, or they take your house back. Same with a car. If you lie on an application, that is your own fault and you deserve what you get. If a lender has collateral they will lend to almost anyone.

But at the bottom of the application, the potential borrower is required to sign, saying he has reviewed the information and it is correct. Did the borowers review the information? Did they review it at closing? I agree that it's shamefull if the banks changed information to get the loans approved, but it's still the borrower's responsibility to repay the loan.

On Sunday's 60 Minutes, they did a piece on banks who lied on the loan applications so that loans would be approved. Now the people who got homes due to fraudulent acts by the banks, are now homeless. World Savings Bank, which is now owned by Wachovia, was one bank suspected of such behavior. It's really despicable.

But if they truly didn't qualify, then the bank obviously didn't do their research. Some banks were intentionally approving loan applications for million dollar homes based on what the applicant said they earned and did for a living - no background checks. Execs defended the practice to Congress, because the banks planned on making money off the loans.

"Obama is saying, well, if you bought a house you could barely afford than we will help you."
Yeah, dude, they don't deserve to be helped. Just let those suckers burn. It's their own fault for being so dense for MAKING the lenders approve them for loans they couldn't afford to pay back. Those lenders must have told them that their interest rates would be sky-high, only to go even higher in the years to come...they plainly and simply ignored the warnings. Obama, shame on you for wanting to help these people. They deserved to be thrown out on their arses.

He's the guy who played frasier. Just thought I would share. We got a whole thread about every star that opened their mouth's for the other side and wasn't going to hold my breath for this one to be posted.

Have you heard Kelsey Grammar discuss this? I heard it yesterday. He said it all.
“It may not be a popular position to take,” said Grammer, “but I honestly believe that the bill is fraught with the idea that those who did the most damage to our country – from the bottom up and the top down – are the ones that are actually going to get the most rewards.”

Oh I keep finding out more and more about this. So, if you were responsible and got a house for a really small amount, expecting that 1 person may lose their job, you are still screwed. Only if your mortgage payment is over 31% of your GROSS income, so you qualify. I would like a lower interest rate, shoot you can be approved for down to 2%. I am at 6.5% That extra 4% is HUGE. But I am not elligble to have mine reduced because i was truly responsible.
Sorry Obama, but you are rewarding the irresponsible. My mom always taught me to prepare for the worst. Obama is saying, well, if you bought a house you could barely afford than we will help you. I freaking hate this crap!

This is what I was speaking of ""First we will make it possible for an est. 4-5 mil currently inelligible home owners who received their mortgages through fannie mae or freddie mac to refinance their mortgages at a lower rate." changes restriction on fannie and freddie so they can refinance a home thats value is less than 80% of the current mortgage "so they can refinance mortgages they arlready own or guarantee."

I think you folks should check your facts before you get all conspiracy theory on Obama. Those companies receiving TARP funds must participate in this program but those that are not will get incentives to participate. Its getting more and more common for some folks on here to jump to wild negative assumptions before actually knowing what they are talking about.

I just heard on the news that this is only going to help people with fannie or freddie loans. talk about BS and helping who you want. I really, really cannot believe that people believe this line he is giving. He is helping who he wants to help. Not trying to spare the economy. :oy:

Pumping money into the housing market is the last thing we should be doing. It will only prolong and worsen the bottom in the market. All Obama has offered is socialism for the rich and socialism for the poor. And I thought he promised new solutions.
I was pleased that the folks stopped buying the stimulus fraud, and I hope that there will be a similar reaction to this nonsense.